Even when trying, saving money can be difficult! Unexpected bills, emergencies, and other life needs can get in the way of building your savings. Though it can feel impossible at times, there is no perfect time to start saving. There are countless adjustments you can make to fast track saving money. Here are 10 money-saving tips you can practice to get started!
Establish a Budget
A great way to develop healthy money habits and save money is by establishing a budget. A budget requires you to be intentional and plan ahead. This allows you to know how and where to allocate your money and how much you can actually save each month. Establishing a budget does not mean you can’t spend money on the things you want but rather, focus on prioritizing your spending and saving. Experts recommend the 50/30/20 rule which involves allocating: 50% of your income to necessities, 30% to wants, and 20% to savings. Implementing this formula also allows you to see what areas you are spending more money in and enables you to make necessary adjustments.
Use Automated Tools
There are various digital tools you can use to help with saving money. This includes using apps to help with budgeting goals, online banking apps that provide assistance and metrics for savings, cashback apps that offer coupons and cost savings, browser extensions that scan the internet for deals, etc.
Prepare for Grocery Shopping
It may surprise you to learn how much you spend on groceries each month. It is really easy to go overboard with groceries – buying too much, getting unnecessary items, etc. Doing a little bit of prep work before grocery shopping can take you a long way in terms of saving! You can do this by taking inventory of what you already have to make sure you don’t get those things, making a grocery list, and planning out meals ahead of time so you know exactly what you need.
DIY as Much as Possible
A DIY, or do it yourself, approach can not only help you save money but also encourage you to learn and practice new skills. From home improvement projects to gifts, and even cultivating a garden — doing things yourself allows you to save on costs and also boosts self-fulfillment!
Cancel Automatic Subscriptions
Subscriptions to streaming services (shows, movies, music, etc.), gym memberships, clothing or food delivery boxes, etc. are incredibly common. You likely have multiple subscriptions that also renew automatically. We highly recommend taking an inventory of what subscriptions you actually use regularly and ones that you can go without. Turn off the auto-renew option so you can cancel before being charged for a new month. Also, figure out which subscriptions can be shared with loved ones which add to saving costs!
Cut Down on Eating Out
Eating out is a major cost. Though going out to eat a few times a week may seem financially harmless, these costs add up. Take the time to think about how many times a week you eat/drink out — including getting coffee! Ways that you can cut down on these costs include packing a lunch for work, sharing meals with friends when out, maximizing happy hours, and allocating a budget just for this part of your life.
Take stock of your monthly bills and evaluate how you can lower a few of your payments. In addition to groceries, you can lower payments associated with your: cell phone, insurance, cable, internet, electric bills, etc. A few tips:
- Get rid of extras related to your cell phone plan: costly data, warranties you aren’t using, switch plans, etc.
- If you have streaming service subscriptions, are you using your cable plan? If not, cancel or bundle with your internet which offers cost savings.
- Track your electric bill and use sustainable ways to reduce your energy use.
- Adjust any debt payments to align with your income. Income-driven repayment plans are a really useful way to lower your student loan and other payments you may monthly.
Plan Major Purchases
Be as intentional as possible about major purchases. Planning out spending-related things like furniture, electronics, household appliances, etc. can help you not overspend. It can also provide you with time to look for deals and make use of sales.
Consistently monitor how much you are spending and saving. Be sure you are within your budget. Maximize the use of apps to help you track your spending and make adjustments when needed.
Set specific and attainable savings goals which give you something concrete to work towards! Let us be a part of your goals to improve your financial situation. Contact us today to learn more.